In the middle of 2017, the powers at be decided that Bitcoin required a new form of technology called a segregated witness. Named SegWit2x, it was a type of technology that decreases how much data requires verification in each block of the blockchain. It does this by removing signature data from a data block that needs to be processed for each transaction. It is then attached to an extended block.
The aim of incorporating SegWit2x was to double the block size from 1mb to 2mb and to put steps in place to improve Bitcoin’s scalability which was severely lacking. The result of this minor tweak resulted in a world first: a 1GB block of data which was around 1,000 times bigger than standard.
While the decision was made by companies and miners who held around 90 percent of Bitcoin’s computing power, not everyone was happy or satisfied with the move. They didn’t believe SegWit2x could scale effectively and also didn’t think it could address the problems Bitcoin faced effectively. What’s more, many people felt its introduction completely undermined what Bitcoin stood for: decentralization.
Therefore, a handful of developers and miners decided to go their own way, putting a hard fork in place and creating another cryptocurrency known as Bitcoin Cash (BCH). It has an increased block size, the verification process is faster, and the level of difficulty is also adjustable as well. It also differs in value and scalability. However, many miners have differing views about its efficacy.
How is Bitcoin and Bitcoin Cash the Same?
Even though they differ in some areas, in many other areas, they are entirely the same. They both hold value, and you can use both BTC and BCH to purchase items and make investments. They also come from the same concept, with much of the same technology. They are also both decentralized and are preferred by thousands of investors over competing cryptocurrencies such as Ethereum.
How is Bitcoin and Bitcoin Cash Different?
Firstly, their values differ significantly. As of May 18, 2018, Bitcoin was worth $8,107.08 and reached highs in 2017 of around $19,000. Bitcoin Cash, on the other hand, is worth $1,225.96. However, their values are not the only thing that separates them, and it’s up to investors to decide which is the most worthwhile investment for future purposes.
Bitcoin Cash’s block size is 8mb, which is around eight times more than that of Bitcoin. As a result, users benefit from faster processing times, more transactions per day, and dramatically reduced fees. Bitcoin’s transaction fees remain at around $6 whereas Bitcoin Cash is just 20 cents. That’s a significantly different price merely by speeding up the time it takes to process a transaction.
The speed and price also help Bitcoin Cash to get the edge over Bitcoin. While it’s not worth as much right now, its seamless blockchain means that it can only but increase in value due to the convenience it offers investors.
What Does the Future Look Like for Bitcoin and Bitcoin Cash?
Just because they have the same name, it doesn’t mean they have the same prospects. Both Bitcoin and Bitcoin Cash are vastly different cryptocurrencies, and each can co-exist quite nicely in the market together. Technological advancements are being made for both, so it’s worth keeping an eye on price charts to see whether Bitcoin made a mistake using SegWit2x, or whether developers made a mistake in creating a hard fork to separate the two.
Regarding Bitcoin vs. Bitcoin Cash, it’s all down to the individual to see which cryptocurrency looks to be the most lucrative option. Putting the current price aside, it’s important to pay attention to scalability, speed, and transaction fees. Time will tell which set of developers made the better decision.